Sunday, July 6, 2014

Why I bought Usdcad

Let me start from the bigger picture- the weekly chart. This pair is setting to form a potential 61.8% gartley pattern at 1.170 and its neighbourhood and  wave analysis in support of this potential makes this thought stronger.

Going by the wave count which started July 2011; wave 3 has successfully completed at 1.1266 and price retraced to the present level ( a potential wave 4) and I am expecting price to push up from here or anytime soon and break the wave 3 to form a wave 5.

1.1700 is a very strong price magnetic zone due to the convergence of Fibonacci extensions and retracement  (check the weekly analytical chart below) and a Resistance . Wave 5 could potentially end there.

How are we sure, to a certain degree, that wave 4 will be formed there. This can be answered by zooming down to the daily time frame.

Now, to the daily time frame. Price has successfully completed a gartley pattern (check the daily analytical chart below) and I expect a big move up.
I started buying on 3rd of this month and I’m still holding on with stop loss at 1.0560 and targets at 1.0800 and 1.0950 for the time being. I expect price to break 1.1280 to form a new high at 1.170 or thereabout .

On the other hand If price go down to break 1.0500 with high momentum, this analysis is invalid and I might have to look again.

NB: This analysis is long term and care should be taken in interpretation. You can drop your comment or mail me if you have any question . Please this is for educational purpose and should not be taken as a call for trade.

Please let me know if this blog has been helping someone by your comments  and you can also contact me if you need a trading partner,mentor or fund manager

Facebook- sanmi Adeagbo
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